Essential reading if you are paying your lender’s SVR for your contractor mortgage.
Are you a contractor mortgage holder sitting on your lender’s SVR? If so and you don't remortgage, you could find your mortgage repayments more difficult to meet in the not too distant future.
But, if there are record-low mortgage rates on offer at the moment, why should this be? The challenge is down to the effects of:
- the increase in the rate of inflation, which is currently 2.9% and is expected to rise to 3%
- more members of the Bank of England’s Monetary Policy Committee voting for a rise in the base rate
According to the ONS, average earnings to April 2017 have only risen by 1.7% across the UK. As this rise isn’t in line with the current rate of inflation, it means borrowers are paying more for their everyday expenses and having less money left over.
The shift in thinking of the MPC could indicate a rise in the base rate is very close. Any rise would be reflected in your lender’s SVR and, consequently, your repayments would increase.
Deal Direct understands how important it is to contractors to find the best all-round value deal so that your repayments are kept as low as possible for as long as possible. This is why we would urge you to seek our expert advice without delay, and explore the options available to you that could potentially save you money when compared to your current rate.
Speak with a Deal Direct adviser on 0800 048 8828 now.
